Local telco to accept Bitcoins

According to CoinDesk's index yesterday, Bitcoin was trading for close to US$850. More businesses are starting to accept the currency as payment. Photo / AP

A small Auckland telco is accepting payment by Bitcoin and says it is first company in the industry from New Zealand to take the digital currency.

2Talk specialises in voice-over-Internet-protocol (VOIP) products, which uses the internet for phone calls rather than the traditional copper-line network. The firm also sells broadband services and says its customers can now pay with Bitcoin.

Bitcoin is a form of exchange detached from any country, government or physical commodity. Its users are their own bank, with Bitcoins stored in and transferred between encrypted digital wallets.

"They were among the first to cut the cord and throw away the old traditional phone service, embracing voice-over-internet technology. So we see payment by Bitcoin as a natural service for our customers."

"It simplifies payment to a 5-second procedure. And for customers paying by Bitcoin, the currency is converted to NZ currency at the time of payment, so any currency variation risk is absorbed by 2Talk," she said

This week an Australian company told the Herald it was planning a Bitcoin ATM for Auckland.

ATMs letting users buy and sell the digital currency for cash have cropped up around the world in recent months since the first was installed in Vancouver last November.